During an Especially Difficult Year of Weakening Financial Conditions, the Government

Multiple Choice

During an especially difficult year of weakening financial conditions, the government of Geriva, a European nation, borrows money to meet its financial obligations. However, once the borrowed amount reaches a certain limit, the government is not allowed to borrow more money. If this was to happen in the United States, it could be said that this is because the government has hit the _____.

A) fiscal cliff
B) reserve requirement
C) debt ceiling
D) price ceiling